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What
is a Franchise?
Other than
starting your own business
or buying an existing business, there is the option of franchising. A
franchise can be the perfect option for someone wanting to start a
business, but with support and backing. A franchise is a way for an
entrepreneur
to enter the business world without having the risks
associated with his/her own business.
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Franchises Explained
A
franchise is basically an extension of another company; they use the
same signs, products, advertising methods, and services of the main
company that it was derived from. Any type of business has the ability
to be franchised if the terms are set in the company contract and
franchise agreement. Restaurants and shops can be franchised.
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Restaurants
such as McDonald’s, Pizza
Perfect and KFC have the ability to be franchised. Other stores, such
as Mozart Ice cream, 7 Eleven and other specialty retail stores can be
franchised in the same way as restaurants.This basically means that a
franchise is another form or branch of the main company, but the
franchise owner is able to make separate decisions apart from the
company itself.
Owning
a franchise is different to owning an actual store as there are rules
and regulations that need to be followed. Depending on what the
franchise is and where it is located, one might have more luck owning
an actual store of the business than he or she would with owning a
franchise. Franchise owners able to experience all of the same
situations as the company owners are.
Even though the
company that had a franchise created of themselves still has some
control over the franchise itself, such as the specific foods that are
used if the franchise is a restaurant, there are some decisions that
the franchise owner can make that will have no impact on the company as
a whole. For example, franchise owners are normally allowed to change
the seating style in their restaurant or store, as well as the prices
of the products themselves (remember that this depends on the franchise
agreement and stipulations). In certain cases, certain aspects about
the products can also be changed with the consent of the company. If
you own a franchise, though, the best thing to do would be to contact
the company itself to make sure you are allowed to make changes without
negating the whole contract! Reckless behaviour and changing certain
aspects can cause trouble, always get permission first.
In
conclusion, franchises are great business opportunities and the
advantages of a franchise
are beneficial. They are definitely great
opportunities to take advantage of if you have the capital to get
started! Franchises are essentially clones of another company, and in
this way franchise owners are able to make most of the decisions and
experience the whole business on their own!
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